Question

Which of the following statements is NOT true regarding Capacity Planning?

- If there is not enough equipment capacity, there is nothing that can be done.

- The capacity plan is used to identify the amount of production that can be done in the current facility.

-The capacity plan helps identify if the company needs more people to meet the master production schedule.

- The capacity plan helps to identify if the company is short on equipment to meet the master production schedule.

Answer 1

If there is not enough equipment capacity, there is nothing that can be done.

Step-by-step explanation:

Capacity of a company is its ability to produce results in a set period of time.When operating, capacity will check if the input resources will produce a desired result/output.Capacity planning will look at the maximum production that can be achieved with the agreed number of working hours.Through capacity planning, a company will know how to utilize its resources to the maximum level to obtain the output needed.If equipment is not enough to produce the required output, the company could invest more in capital intensive resources such as putting modifications on a product to attract more clients to meet the targeted output of production or start a new product that will attract new users to reach the expected ouput in terms of sales of the product.